Bernanke Approved for Second Term as Fed Chair

The U.S. Senate confirmed Federal Reserve Chairman Ben Bernanke for a second term on Wednesday in a 70-30 vote. While such a ratio may seem like a slam dunk to outside observers, Bernanke’s reappointment has faced more opposition than any other Fed Chair in history.

Bernanke, a Republican, was appointed by former president George W. Bush to replace then-chair Alan Greenspan. Bernanke came in during the height of the 2006 bubble and oversaw the government’s attempts to prevent a full-on economic collapse a few years later.

Supporters, such as the president, have said that Bernanke stayed cool under pressure and kept a bad situation from turning much worse.

His opponents, however, have criticized him for his handling of the global financial crisis as well as for failing to anticipate it to begin with. Not helping matters is anger over the central bank’s role in the controversial bailout of American International Group, a role that Bernanke had to defend along with Treasury Secretary Timothy Geithner, who then chaired the New York Fed. This was not enough to blunt his mostly Democratic support in the Senate, however, as it became apparent last week that Bernanke would be reconfirmed despite controversy.

One of the “no” votes came from Sen. Bernie Sanders of Vermont, an avowed Socialist, who has partnered with Libertarian maverick Rep. Ron Paul in the House to advance a bill that would subject the Fed to a full audit for the first time since the central bank was formed. Both Sanders and Paul have been highly critical of Bernanke in the past despite being on near opposite ends of the political spectrum.